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LAWSUITS NEWS & LEGAL INFORMATION

Goldman Sachs Reaches Settlement in $698M Mortgage-Backed Securities Lawsuit


This is a settlement for the Securities/Stock Fraud lawsuit.

New York, NY: A preliminary securities class action settlement has been agreed between Goldman Sachs Group Inc, (GS) and investors in a GS $698 million mortgage- backed securities offering.

The Public Employees' Retirement System of Mississippi filed the securities class action against GS in 2009, alleging New Century Financial Corp, which originated the mortgages underlying the securities, failed to adhere to its underwriting standards and overstated the value of the collateral backing the loans. The fund claimed GS didn't conduct proper due diligence when it bought the loans in 2005.

The lawyer representing the retirement fund told U.S. District Judge Harold Baer in a letter made public today that both sides had accepted a settlement proposed by a mediator. Details of the agreement weren't disclosed, according to a report by BloombergBusinessweek.

The case is Public Employees Retirement System of Mississippi v. Goldman Sachs Group Inc., 09-cv-01110, U.S. District Court, Southern District of New York (Manhattan).

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Published on Jul-19-12


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